Speculations: What Would A Donald Trump Presidency Mean For U.S. Real Estate?
By JD Esajian on June 26, 2015
Donald Trump has thrown his hat into the ring as a U.S. presidential candidate for 2016, and he’s making a lot of noise about it. That said, how could his position as a president impact property markets across the country?
The Disclaimer:
This is not a promotion for Donald Trump, or a thumbs up for his candidacy. Most don’t even take his campaign announcement seriously, or believe he has any real shot at getting elected, but all real estate investors and professionals should be anticipating who will win the 2016 election. Whoever wins will impact the industry, real estate values, and the personal wealth and incomes of millions of people. Nonetheless, it would certainly be interesting to see a ‘real estate president’ in office.
So what would a Trump White House look like?
The New Trump-House
It is unlikely Donald Trump would be satisfied with the current White House as his digs during four years as the commander in chief. In fact, Trump’s Mar-A-Lago in Palm Beach, FL is already considerably larger than the White House. As are around 25 other homes in the U.S., according to Wikipedia. So expect a major rehab job.
Strong Negotiations
Trump prides himself on being a strong negotiator, and quite frank. That might mean many different things on the global landscape, but it could quite possibly include expanding our footprint internationally.
More Reality TV
How about a White House version of The Apprentice? Those that love reality TV could be in for a great treat with plenty more real estate reality TV shows, Trump TV shows, and more spinoffs.
Luxurious & Expensive
Love or hate The Donald, he has developed a personal and real estate brand known for luxury. We could see great growth in U.S. real estate prices, and even more luxurious properties from coast to coast.
Bankruptcy
While Trump has had huge success and claims to be worth almost $9 billion today, he is also perhaps equally known for the times he has gone broke. This includes various bankruptcies, even at the height of his career. He says he has learned many lessons. In particular, to use non-recourse financing, versus personal guarantees when buying real estate. Some may question how that would play out in running one of the largest national economies in the world.
Bold Branding
Trump is basing much of his pitch on building up the American brand. If there is one thing he has certainly proven to be capable of, it is brand building. A stronger USA brand could be a great thing for all U.S. real estate businesses, workers, and investors. It will help elevate and strengthen the market, as well as attracting more international real estate investors and foreign capital.
Easier Real Estate Investing and Borrowing
While the rules of investing change when you are elected president, most would assume that the likes of Donald Trump would work to make real estate investing and financing easier. Restoring confidence in lending markets, facilitating more common sense investing, and enabling individuals to weight more of their investment portfolios with real estate would likely be a part of this. Whether it will be good for America and investors in the long run will depend a lot on sustainability.
Why We Need a Real Estate Minded President
Whomever is elected as president for 2016 does need to be real estate minded. Real estate is our most precious asset. It is core to our economic performance, jobs, health, and much more. A strong real estate market means a strong country for all. This isn’t only true when it comes to voting for president. It matters all the way down to local delegates.